ALBANY - New York is creating a 90-day safety period for homeowners snared in the national subprime mortgage so they will be able to more fully understand their options.

The new law will also criminalize some of the loan practices that contributed to the loss of more than 50,000 homes in New York so far.

Gov. David Paterson and legislative leaders agreed Thursday to create the 90-day period to allow homeowners to have conferences with lenders and receive other information about how to best cope with their debt. The waiting period will be added to what is typically a 440-day foreclosure process in New York, the longest in the nation. The legislation aims to help homeowners who, because of poor credit or other circumstances, sought the less conventional borrowing.

But the legislation won't include a moratorium on foreclosures to allow New Yorkers to remain in their homes longer while trying to modify their mortgages. A moratorium was sought by advocates for homeowners and by the Assembly's Democratic majority.

Paterson said a moratorium wouldn't be as helpful as some advocates believed.

The Democrat said it simply would allow owners a longer stay in the homes they would eventually lose.

Especially hard-hit areas include Queens, but lawmakers say the whole state will benefit.

They said even one foreclosure can lead to a decline in neighboring homes' values, erosion of the tax base, and increased crime.

The state estimates another 38,000 homes in New York could face foreclosure this year.